That means as many as 435,000 small and medium sized firms (SMEs) could each save up to £1,440 per car every year, according to new research by industry and government campaign Go Ultra Low.

However, many businesses are unaware of the potential savings of switching to EVs, with only 35% considering whole-life vehicle costs.

It suggests the major considerations are about vehicle contract hire rates (32%) and list price (12%).

Despite that, more than two thirds (67%) said they would consider 100% switch to electric or hybrid cars with lower whole-life costs compared to petrol and diesel equivalents.

Figures released by Lex Autolease show the higher initial cost of plug-in electric vehicles can be more than offset by significant fuel savings, tax benefits and a potential 70% reduction in service and maintenance costs.

The research also found UK companies already using EVs for business operations are more than 2.5 times as likely to offer them to their employees as company cars.

Poppy Welch, Head of Go Ultra Low said: “Cost savings are a top priority for companies of all sizes. So fleet operators from both SMEs and large companies that look beyond a vehicle’s initial purchase price or monthly rental, stand to save their companies thousands of pounds every year.”